Abstract
This paper presents a new test of the purchasing parity theory by investigating the announcement effect of unexpected inflation on the exchange rate of the US dollar against three European currencies. The evidence presented does not support the theory, at least in the very short run.
| Original language | English |
|---|---|
| Pages (from-to) | 333-338 |
| Number of pages | 6 |
| Journal | Economics Letters |
| Volume | 12 |
| Issue number | 3-4 |
| DOIs | |
| State | Published - 1983 |
| Externally published | Yes |